• Application approval within 1 hour
  • As low as 1% interest rate per month
  • Quick disbursement of loan upon signing

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  • Sift through the best loan offers from more than 150 licensed moneylenders
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How to Apply for a Personal Loan for Foreigners in Singapore

Eligibility & Requirements for Banks

Banks require that you must meet all of the eligibility requirements for you to be approved for a personal foreigner loan in Singapore.

Eligibility:

  • Must be 21 years or older
  • Annual income is S$40,000 or more

Required documents:

  • Photocopies of the front and back of your Passport
  • Photocopies of an authentic Singaporean employment pass indicating that you are permitted to work in Singapore
  • Proof that you are a full-time employee and not a part-time employee
  • An employment letter from your current place of work
  • A bank statement (for the last three months) of where your salary is paid into
  • A copy of the most recent income tax notice of assessment
  • A recent original and computerized payslip
  • A tenancy agreement form from your current residency

 

Eligibility & Requirements for Licensed Moneylenders

Just like banks, licensed moneylenders have their own requirements that you must meet for you to be eligible for a personal foreigner loan.

Eligibility:

  • Must be 18 years or older
  • Minimum monthly income of $2,000

Required documents:

  • Latest 3 months payslip
  • A 3 months bank statement of where your salary is paid into
  • Proof residency through a tenancy agreement
  • An employment pass or work permit or any other valid pass that allows you to legally work in Singapore
  • A letter of employment or an employment contract
  • A valid passport

Most moneylenders in Singapore have the same application process, which include:

  1. Calling or applying from the comfort of your home with a few clicks using our online form
  2. Visiting the branch for an appointment to create a customized plan that caters for your needs
  3. Finalization of the loan application process and receiving of cash right after

The best personal loans for foreigners in Singapore are offered by banks and licensed moneylenders. Approaching unlicensed and illegal moneylenders may leave you paying your loan on illegal interest rate charges.

 

  1. Can Foreigners Apply for Personal Loans in Singapore?
  2. Yes, foreigners can apply for a personal loan in Singapore. Often, foreigners may need to supplement their income with a loan to pay their bills. You may need some extra cash to take care of your phone services or pay rent for your residence. Other needs may include renewing your travel permits and documents, or to send money back home to your family. However, they must meet the requirements set for eligibility by the lenders.

  1. What is the Interest Rate for Foreigner Loan?
  2. Interest rates for a foreigner loan differ with the lending institution you approach. However, the range for banks is 4.48% to 11% or more per annum. The maximum interest rate that a moneylender can charge is capped at 4% per month.

    Foreigner loans offered by banks have a slightly higher interest rate due to the temporary nature of the employment status of foreigners. They are considered to be high-risk loans, and therefore attract high-interest rates from banking institutions.

  1. What Types of Foreigner Loans are Available in Singapore?
  2. There are several loan options available to foreigners in Singapore.

    Personal Instalment loans

    These are the most common personal loans for foreigners. The borrower receives a lump sum of the loan upfront, with an agreement to repay in monthly installments for the stipulated tenure period.

    These are the best personal loans for a foreigner who needs to take care of large expenses.

    Credit Lines

    These are loan types that allow a borrower to draw the money as they need it, and often involves a set limit above which a borrower may not draw.

    A credit line is the best loan for foreigners who are looking to pay only for the interest rates of what they borrow. They are useful when borrowing small amounts of money regularly.

    Debt Consolidation Loan

    This is a loan that you use to repay off your existing debts. These loans help in consolidating debt and are often the best loan for foreigners who plan to repay in a short period of time. They are also helpful for foreigners who are looking for a long term loan.

  1. How Do Foreigner Loans Work?
  2. To secure a foreigner loan in Singapore, you first need to consider the lender you wish to approach.

    The loan application process then starts and your preferred lender reviews your eligibility for the loan. Once the lender declares your eligibility, you will then receive the terms for the loan.

    If you agree to the loan terms, the lender finalizes your paperwork and the funds are disbursed to you. Once you receive the money, you can then use it for your needs and start working on your repayment plan.

  1. How Much Can I Borrow?
  2. The amount a foreigner can borrow depends on how much income they make per annum, and the type of loan- whether secured or unsecured. While you can obtain any amount of money for a secured loan, different lenders have different lending terms.

    Banks

    Banks allow you to borrow up to 4 times your monthly income or up to S$250,000. If you can provide collateral for your loan as a foreigner, banks can provide any amount of loan you need. With a good credit score and an annual income of more than $120,000 some banks can offer loans up to 8 times your monthly income.

    Licensed Moneylenders

    For foreigners with income above $20,000 per annum, you can receive a loan up to 6 times of your monthly salary. Refer to the table below for details:

    Borrower’s annual income Singapore Citizens and Permanent Residents Foreigners residing in Singapore
    Less than $10,000 $3,000 $5,00
    At least $10,000 and less than $20,000 $3,000
    At least $20,000 6 times monthly income 6 times monthly income
  1. Comparison of the loan features of moneylenders vs banks
  2. Features Banks Moneylenders
    Minimum annual income $40,000 $24,000
    Loan amount Typically up to 4x your monthly salary Up to 6x your monthly salary
    Interest rate From nearly 4% p.a.; EIR around 7% Up to 4% per month
    Repayment period 1-5 years Up to 12 months
  1. What Are the Other Fees and Charges that Apply to Foreigner Loans in Singapore?
  2. Banks have the following extra fees and charges when offering personal loan to foreigners in Singapore;

    • A processing fee which ranges from 0%-3%
    • Early repayment penalty incase of making early payments for huge loans
    • Annual fees ranging between $60-$120
    • Late repayment fees and finance charges

    When dealing with licensed money lenders, here are some fees and charges to expect;

    • A fee of not more than $60 for every month of late repayment.
    • A fee of not more than 10% of the principal loan amount during the disbursement of the loan
    • All legal costs that a court may order for any successful claims made by a moneylender when recovering a loan

    All charges imposed by the moneylender including; interest, late repayment interest, upfront administrative fees, and late fees- should not exceed the principal amount offered as loan

  1. How Fast Can I Get My Loan Approved?
  2. Moneylenders are essentially a fast cash option while banks approve personal loans for foreigners at a much slower rate.

    Moneylenders are less rigid and are able to work out an approval and repayment plan that fits the parties involved. The whole process of application and approval only takes one hour. However, disbursement of the loan varies depending on the signing of the contract.

    Banks are relatively slow and often take more time in processing your application and approving your loan. The application and approval process for a personal foreigner loan in Singapore can take from days to weeks.

How to Differentiate Between Licensed and Unlicensed Moneylenders

Despite the government’s efforts to control illegal moneylenders in Singapore, illegal moneylenders are always on the prowl for innocent foreigners. Here is a list of all the licensed moneylenders operating in Singapore.

Here are some redflags to be aware of:

  • You receive flyers, SMSes, emails or other forms of advertisements which are not permitted under the rules, these would be from either licensed moneylenders operating in violation of the rules, or unlicensed moneylenders.
  • Ask for your SingPass user ID and/or password.
  • Retain your NRIC card or any other personal ID documents (e.g. driver’s licence, passport, work permit, employment pass or ATM card).
  • Ask you to sign on a blank or incomplete Note of Contract for the loan.
  • Grant you a loan without giving you a copy of the Note of contract for the loan and/or without properly explaining to you all the terms and conditions.
  • Grant you a loan without exercising due diligence (e.g. approving a loan over the phone, SMS or email before even receiving your loan application form and supporting documents, such as the income tax assessment and payslips).
  • Withhold any part of your principal loan amount for any reason.

Factors to Consider When Choosing a Foreigner Loan

Loan Amount

Your income will play a significant role in determining the loan amount you are eligible for. The best personal loan for a foreigner should ideally be less than the actual income for you to repay quickly, and comfortably.

Loan Tenure

Before you sign up for your loan, figure out how fast you will need to repay the loan, and if the tenure will be manageable for you.

Loan Provider

Foreigners in Singapore have multiple options for where they can source for their personal loans. It’s important for you to research the best loan provider to approach for your loan. If you are considering approaching moneylenders rather than banks, think about the advantages that you will benefit from and how they outweigh any risks involved.

Interest Rates

Some lending companies may publish lower than actual interest rates as a marketing ploy. It’s important that you do your due diligence to ensure that you verify the interest attached to your loan. While interest rates are generally high for foreigner loans obtained through banks, interest rates from money lenders are capped at 4% per month.

Other Charges and Fees

It’s important to properly research the loan options that you have, and know if they come with extra fees and charges hidden in the fine print.

Some loans may have high processing fees, while others may offer the same loan and waive all the processing fees. Ensure that you fully understand if there are other hidden charges, extra costs, or penalties that come with your loan.

Your Purpose

The purpose for which you need a loan should help you know the loan provider to approach, the amount that you need, and the repayment terms that you are considering.

If you are going for an emergency loan to help you take care of an emergency, a licensed money lender will be your best bet. If you are looking for a long term loan that you will pay over the period of several years, then you may want to approach a bank that offers flexibility in installments and other repayment terms.

Terms and Conditions

Essentially, every credit facility has some set terms and conditions. These include the fees and charges to expect during the application and processing of your foreigner loan in Singapore.

Discuss the terms and conditions with your loan officer and ensure that you fully understand everything before you bind yourself legally. Figure out the fees you will have to pay to get your loan and all the other loan details. It will be necessary for you to have a clear picture of how your loan repayments will affect your income during the repayment period.

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